St. Petersburg warehouse and industrial market review 2017


  • As a result of 2017, the total volume of the warehouse real estate market increased by 92 000 square meters and reached a level of 2.7 million square meters.
  • The indicator of new commission is minimal since 2011. Against the backdrop of the limited qualitative speculative supply, the trend towards projects with maximum occupancy continues to strengthen.
  • At the end of 2017, the share of speculative warehouses strengthened. 70% of newly commissioned facilities were built for speculative needs.
  • The structure of the general amount of quality warehouses has not changed significantly. As of the beginning of 2018, warehouses built for the end user accounted for 54% of the total supply, the speculative supply occupies a share of 46%.

Typical requests of potential customers in 2017

  • Lease of warehouse: 1000-2500 square meters, ceiling height from 6 meters, 2 gates per block, floor level at 1.2 meters, availability of racking system.
  • Purchase of warehouse: 2000-5000 square meters, convenient transport accessibility, ceiling height from 10 meters.
  • Requests for premise rent from manufacturing companies: 1000-3000 square meters, electricity capacity of 100-300 kW, lifting equipment (crane beams, telphers).
  • Requests for premise purchase from manufacturing companies: 5000-10000 square meters, electric power of 500-1500 kW.


  • Against a record low commissioning of quality warehouse space, the vacancy level continues to decline.
  • The current vacancy rate in high-quality warehouse complexes comprises 4%.
  • At the end of 2017, the demand structure did not change significantly. FMCG segment companies, distributors of non-food products historically demonstrate high activity.
  • As a result of 2017, the logistics companies returned second place in the structure of lease deals - 28% versus 19% in 2016. The logistics company «Alidi», which rented 15,000 square meters in the warehouse complex «Octavian», concluded the largest lease deal.
  • Steadily high demand is demonstrated by companies in the manufacturing sector, however, due to limited supply only 1/3 of applications become deal.

Rental Rates

  • At the end of 2017, the average level of rental rates, nominated by the owners, is 4,100 RUR per square meter per year, excluding VAT, utilities, operating expenses.
  • In 2017, rental rates continued to show moderate growth amid the deficit of the new supply. At the end of 2017, rental rates increased by 2.5%.
  • Production companies consider the rental rate not higher than 360-380 RUR per square meter per month, including VAT, while utilities are paid separately.

Trends and forecasts

  • According to our estimates, 80% of requests for rent and purchase of premises come from manufacturing companies. The large activity is shown by companies from the light industry and medium engineering industry.
  • Traditionally, the demand from food producers is high, but the supply of quality premises for food production in the St. Petersburg market is very limited. Along with them, the demand is formed by logistics companies, distributors of consumer goods, construction and finishing materials.
  • In view of these conditions, more and more owners express their readiness to build objects according to the built-to-suit scheme for a particular tenant in compliance with the client's requirements. Tenants beware of risks: firstly, higher rates, in comparison with the market rates of existing facilities, and secondly, the failure of the object commission dates.
  • Potential tenants, along with leasing, are increasingly considering options for buying objects.
  • Production premises within the city border, equipped with lifting mechanisms (crane-beams with a carrying capacity of 5 tons and more) are of the most demand from the tenants.
  • The average warehouse area requested for rent is 1500-2000 sq.m., the average production area requested for rent is 2000-3000 sq.m.
  • Potential tenants form a high level of demand for small blocks of up to 1000 square meters in so called «light industrial» format.

Key market events

  • Raven Russia purchased the warehouse complex "Gorigo" with a total area of 87,000 square meters in the industrial zone "Gorelovo".
  • PNK Group announced the construction of an office and warehouse complex for «Victoria Stenova» with an area of 9,000 square meters in the industrial park "Sofiyska-KAD". This is the first deal in the park.
  • Developer of «Nordway» complex announced for 2018 the start of speculative warehouse «Logopark M-10» construction with an area of 28,000 square meters in Shushary.
  • «Sevkabel» announced the construction of a plant estimated at 3 billion RUB at the territory of the industrial park "Maryino". Construction is scheduled to begin in the second half of 2018.
  • The pharmaceutical cluster of St. Petersburg continues to develop. Thus, the pharmaceutical company «Polisan» is completing the construction of the third stage of the plant. Activity is also shown by smaller companies in the pharmaceutical market: in 2017, IPG.Estate closed the deal for the purchase of a warehouse by a pharmaceutical company in the Primorsky district.
  • Fazer Co. postponed the construction of the plant in St. Petersburg for three years. The planned investments in the project estimated to 14.8 billion RUB.
  • Due to the corporate conflict, one of the largest Internet retailers in Russia, «Ulmart», began offering its new distribution centers for sale and rent.
  • Industrial enterprises continue to actively offer vacant facilities for lease and sale. For example, JSC "LOMO" in 2017 vacated a number of production premises for lease. During 2017, IPG.Estate successfully implemented three lease deals with a total area of 10,000 sq.m.

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